Skoda is planning to double its production capacity in India. The company sells the old-model Octavia and built 7,200 cars in 2004, 55% up on 2003’s 4,656 cars. The sales target for 2005 has consequently been raised from 10,000 units to 13,200.
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The growth will be driven by new models to be introduced in 2005 including the redesigned Octavia launched recently elsewhere, the Octavia Kombi, the Fabia and the Superb diesel with Pumpe Duse technology. The first new model will be introduced in the second half of 2005 followed by another newcomer every two months or so.
While the present CKD assembly capacity of 15,000 units a year is sufficient to meet the 2005 target, Skoda is planning to add room for 10,000-15,000 extra units.
India will remain a CKD assembly operation until sales reach 40,000 units a year, enough to justify full manufacturing.
Skoda India is also considering exports to neighbouring countries. Company officials said that the automaker is looking at developing a model specifically for the Asian markets though that plan is at only the initial study stage.
Deepesh Rathore / Tilak Swarup
